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India’s Push Towards AI Leadership

India has been making significant strides in artificial intelligence (AI), but how close is it to developing a DeepSeek-level AI system? While global tech giants are leading the race, India is still in the early stages of building a competitive AI ecosystem. However, the country is taking decisive steps through government initiatives, corporate investments, and international collaborations.

Key Players in India’s AI Race

Several Indian conglomerates, including Reliance Jio, Tata Electronics, Adani Group, TCS, and Infosys, are positioning themselves as major players in AI. These companies are working on industry-specific large language models (LLMs) to cater to different business sectors. With a vast data pool and a strong tech workforce, India has the potential to develop AI models tailored for its diverse population and industries.

Government Initiatives: A Step in the Right Direction

The India AI Mission, launched with a budget of ₹103 billion ($1.2 billion) over five years, aims to accelerate the country’s AI research and infrastructure. This includes investments in GPUs, AI models, and applications. However, experts argue that India's AI funding is still significantly lower than that of the U.S. ($250 billion) and China ($90 billion).

The Global AI Landscape: Where Does India Stand?

India’s approach to AI development differs from China’s, which has built domestic alternatives to foreign platforms across multiple sectors, from social media to electric vehicles to AI models. Unlike China, India has not imposed restrictions on foreign AI technologies, allowing global firms like OpenAI, Google, and Meta to dominate its market. This has led to concerns that India might lag in developing independent, homegrown AI solutions.

The Role of International Collaboration

India is a crucial market for AI adoption. In early 2025, OpenAI CEO Sam Altman met with IT Minister Ashwini Vaishnaw to discuss potential collaborations. India is currently OpenAI’s second-largest market by user base, showcasing the country's enthusiasm for AI technologies. However, experts warn that without significant domestic investment, India could become a consumer rather than a creator in the AI revolution.

Challenges Hindering India’s AI Growth

• Lack of Deep Tech Investment: India’s focus has traditionally been on software services, with limited R&D in deep-tech fields like semiconductors and AI chips.
• Talent Brain Drain: Many of India’s top AI researchers work for U.S. tech giants, contributing to a talent drain that slows domestic AI development.
• Infrastructure Gaps: AI research requires significant computing power, and India’s data centers and GPU resources are not yet on par with leading AI nations.
• Regulatory Uncertainty: India lacks clear AI regulations, which can deter long-term investments in AI development.

AI’s Potential Economic Impact on India

AI could add $500 billion to $1 trillion to India’s economy by 2035, according to estimates by consulting firms like McKinsey & Co.. However, AI also poses risks to employment in traditional tech jobs, which make up a significant portion of India’s workforce.

The Road Ahead: Can India Catch Up?

India has the ingredients to become a major AI player, but it needs to take bold steps, including:

• Increasing AI R&D funding to match global competitors.
• Building domestic AI infrastructure, including supercomputing facilities.
• Encouraging homegrown startups to develop AI models for Indian languages and industries.
• Retaining top AI talent by creating incentives for researchers to work in India.
• Developing policies to regulate AI while fostering innovation.

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While India is making progress in AI, the gap between it and AI leaders like the U.S. and China remains wide. If India wants to create its own DeepSeek, it must prioritize AI development with greater urgency and investment. The next few years will be crucial in determining whether India emerges as a leader in AI or remains dependent on global tech giants.

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